Glossary · The loan itself
In short
A revolving credit facility already in place for the business. As a buyer, you need to understand if this will be paid off at closing or if you're taking it over, impacting your working capital.
With an SBA 7(a) acquisition, existing business debt, including lines of credit, must typically be paid off with loan proceeds or refinanced. Ensure the seller fully discloses all existing credit lines and confirm the closing statement addresses their payoff. Don't assume you can keep the existing line unless explicitly agreed with the lender.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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